BofA to price autocallable step-up notes linked to PHLX Housing index

By Angela McDaniels

Tacoma, Wash., July 3 – BofA Finance LLC plans to price 0% autocallable market-linked step-up notes due July 2019 linked to the PHLX Housing Sector index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

The notes will be automatically called at par of $10 plus 8.5% if the index closes at or above the initial index level on the observation date, which will occur in August 2018.

If the notes are not called and the final index level is greater than the step-up value, the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment.

If the final index level is less than the initial level, investors will have one-to-one exposure to the decline.

The step-up value is expected to be 112% to 118% of the initial index level, and the step-up payment is expected to be 12% to 18%. Both will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price in July and settle in August.

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